Following Hurricane Katrina, FEMA prepared PW 213 for $9,685,194 for debris removal and disposal costs associated with contract work performed from September 11, 2005, through June 30, 2006. FEMA also prepared PW 10806 for $4,591,700 for work performed from July 1, 2006, through June 1, 2007, pursuant to a contract extension. FEMA de-obligated $2,535,404 at final inspection for costs associated with work determined to be under the authority of the Federal Highway Administration’s (FHWA’s) Emergency Relief (ER) Program and contract costs determined to be unreasonable. FEMA determined that the $18.25 per cubic yard (CY) price for non-hazardous debris removal and disposal established by the City of Waveland’s (Applicant) noncompetitively procured contract was excessively high. FEMA substituted a $15.00 per CY price it determined to be reasonable based on average contract prices in a neighboring county. The Applicant asserts that it is eligible for de-obligated costs not funded by FHWA’s ER Program, specifically costs associated with work performed after the first pass. The Applicant also asserts that the CY price is reasonable in comparison to contract prices for similar work performed in nearby areas.

Issues:

1) Does Section 312 of the Stafford Act require FEMA to prevent duplication of benefits including the provision of assistance when another Federal agency has specific authority to perform the work?

2) Has the Applicant demonstrated that its debris removal and disposal contract prices are reasonable and comparable to similar work performed in nearby jurisdictions?